American Petroleum Institute

The American Petroleum Institute (API), based in Washington, D.C., is a "major research institute .. committed to using the best available scientific, economic and legal analysis to guide and support" its policy positions. The Institute's work is member-driven and it offers "companies large and small the opportunity to participate in shaping API programs and policy priorities." API represents more than 400 members involved in all aspects of the oil natural gas industry. The API has offices in 27 state capitals. 

"Energy Citizens" rallies
In August 2009, an API-led coalition called "Energy Citizens" announced plans to hold rallies opposing the Waxman-Markey Climate Bill in about 20 states, targeting states "whose Democratic Senators aren't strong supporters of a stringent bill, such ... Sherrod Brown of Ohio and Mark Begich of Alaska." In addition to API, "Energy Citizens" has backing from the National Association of Manufacturers, American Farm Bureau, American Highway Users Alliance, National Black Chamber of Commerce, Small Business and Entrepreneurship Council, FreedomWorks, American Conservative Union, Americans for Tax Reform and Council for Citizens Against Government Waste.

"The group has loudly protested the EPA’s decision to have greenhouse gas emissions regulated under the Clean Air Act. API members include Chevron, ConocoPhillips,Exxon Mobil, GE, Halliburton and Shell."

Template fliers for the "Energy Citizens" rallies warned, "Climate change legislation being considered in Washington will cause huge economic pain and produce little environmental gain." The fliers also claimed that the Waxman-Markey Climate Bill, which passed the House of Representatives in June, would "cost 2 million American jobs, raise gasoline and diesel prices up to $4," hurt U.S. businesses and energy security. In contrast, the Environmental Protection Agency estimates that the bill would cost U.S. households "about a postage stamp a day," while the Energy Information Administration projects that annual "energy bill costs could rise between $26 per household to to $362 by 2020."

Part of API's blog is devoted to "Energy Citizens." API also has an "Energy Citizens" YouTube channel.

Other climate policy-related actions
In April 2009, API sent a letter to members of Congress, in Gerard's name, that slammed the Obama administration. It stated: "The US oil and natural gas industry has the expertise and technology to produce the energy we need to fuel economic growth, create jobs, generate significant revenues for local, state and federal governments, and bolster our national security. However, our companies cannot do so if held back by harmful, counter-productive taxes and are restricted from access to domestic oil and natural gas resources that the country urgently needs. ... If imposed, these taxes and fees could have a debilitating effect on our economy, when our nation can least afford it. They would reduce investment in new energy supplies, meaning less energy produced for American consumers. We cannot tax our way out of our energy problems.”

The same month, API protested the Environmental Protection Agency's finding that greenhouse gas emissions endangered public health and could be regulated under the Clean Air Act. "The Clean Air Act was created to address local and regional air pollution, not the emission of carbon dioxide and other global greenhouse gases," said API's Jack Gerard.

2008 elections
In response to the November 2008 election of Democrats Barack Obama as President and Joe Biden as Vice-president, API released a statement in the name of their CEO, Jack Gerard, saying: "The American people have spoken loud and clear that they want politicians to put aside partisan bickering. ...The oil and natural gas industry stands ready to help put America's vast energy resources to good use, strengthening our nation's economy and energy security, and providing good jobs for Americans across the country."

Earlier, Gerard had criticized Obama's platform, saying "Obama's plan to impose a windfall-profits tax on oil companies would harm one of the few industries that are thriving" in the economic crisis.

History
"For 76 years, API has been the petroleum industry's U.S. national trade association. API released its first standard in 1923, intended to promote the interchangeability of oil field equipment throughout the industry." 

"Today, over 900 API standards serve as the basis for API quality programs covering production material and lubricants, and certification programs for storage tanks, pressure vessels, and piping inspectors. They also publish recommended practices, research reports, and specifications on pipelines, valves, offshore structures, oil-spill response procedures, environmental protection, exploration, facility management and much more." 

Questioning global warming
An API "Communications Action Plan" from 1998 stated: "Victory will be achieved when ...  citizens 'understand' uncertainties in climate science  ... [and] recognition of uncertainties becomes part of the 'conventional wisdom.'"

Concerns about API-funded research
In April 2005, it was reported that API was overseeing a $27 million study on the health effects of benzene, funded by the major oil companies BP, Chevron Texaco, ConocoPhillips, Exxon Mobil and Shell Chemical. The study was launched in 2001, in response to a National Cancer Institute study that found "workers exposed to average levels of benzene had a risk of developing non-Hodgkin's lymphoma more than four times greater than the general population." A follow-up NCI study, published in 2005, found that "benzene had toxic effects on blood cells at 1 part per million - the level workers in the United States are allowed to be exposed to over an eight-hour workday." Benzene is a component of gasoline, so oil companies were concerned that tighter benzene regulations would affect their operations. 

Although the API research wouldn't be complete until 2007, information from "depositions, proposals to oil companies and other documents collected by a Houston law firm in unrelated lawsuits" suggests that "the results of the study already have been predicted." The Houston Chronicle reported, "The conclusions are expected to contradict earlier research linking low- and mid-levels of benzene to cancers and other blood diseases - findings that could spawn tighter regulations." 

One research proposal from a Mobil Oil toxicologist said the study would "respond to allegations from a nationwide study of benzene exposed workers." The research proposal submitted to Marathon Oil stated that "the benzene research was expected to provide scientific support for the lack of a leukemia risk to the general population, evidence that current occupational exposure limits do not create a significant risk to workers and proof that non-Hodgkin's lymphoma could not be caused by benzene exposure." 

A Powerpoint presentation on the proposed research shown to potential oil company funders "included a section describing 'the significant issues of concern to global petroleum industry that the research would affect.' Those issues included possible changes to the way gasoline is made, additional emissions controls and litigation." 

In response to the April 2005 media reports on the benzene study, API manager of health sciences Lorraine Twerdok stated that the study "is being conducted to gain a better understanding of the relationship between benzene exposure and potential cancer risk to protect industry workers and customers." 

Petroleum is "cool"
The API is the producer of a 16-minute video titled 'Fuel-less: you can't be cool without fuel', which was distributed through the National Science Teachers Association. The film starts with the line "you're not going to believe this, but everything everything I have that's really cool comes from oil!" .

The API funds a website called 'classroom energy', which aims to provide teachers and students with materials on 'the vital role of oil and natural gas in modern life.'

An API memo leaked to the media in 1998 shed some light on the motivation for targeting schools: "Informing teachers/students about uncertainties in climate science will begin to erect barriers against further efforts to impose Kyoto-like measures in the future." 

Super Bowl 2008
At the January 2008 Super Bowl U.S. football championship game, API sponsored "Kickoff to Rebuild," highlighting its work with Rebuilding Together, a nonprofit organization that promotes homeownership. API and Rebuilding Together are launching an "Energy Efficient Homes Initiative," which aims "to incorporate energy-efficiency measures in the more than 9,000 homes revitalized each year by Rebuilding Together."

Blogger outreach
API has been battling the oil industry's negative public image for years, including by doing increased media outreach. In November 2007, Reuters reported that API, along with Chevron and Royal Dutch Shell "have reached out to a conservative band of bloggers." API "paid for seven bloggers" to take two trips in November, one to Houston and Corpus Christi, Texas, and one offshore in the Gulf of Mexico. API required the bloggers to disclose that the industry group had funded the trips, but otherwise "placed no restrictions" on them. API's "new media advisor," Jane Van Ryan, admitted that the bloggers chosen -- for the Texas trip, Ed Morrissey, Bruce McQuain, Brian Westenhaus and the National Association of Manufacturers's Carter Wood -- "have not been particularly critical of the industry." While API's blogger "outreach effort" is new, "reporters who cover the energy industry are often invited by companies to visit offshore drilling rigs or production platforms," notes Reuters. API plans similar junkets for 2008.

In May 2007, PR Week reported that API was ramping up media outreach, including bloggers for the first time. "We felt we should become more involved" in the blogosphere, explained API's Jane Van Ryan, "because there are a lot of policies and news-related items being discussed." The industry group held three blogger teleconferences, "on subjects including energy and environment and, most recently on May 16, gasoline prices," reported PR Week. "Blogs the API has reached out to include The Oil Drum, Energy Outlook, and the Daily Reckoning." API's "team of seven media relations people" continues traditional media outreach, fielding "a 'huge amount of calls' from the networks, major dailies, trade press, small newspapers in 'virtually every state,' and consumers," after the latest price hike.

The blogger "Devil's Advocate" wrote about an API-organized bloggers conference call on biofuels, held on February 20, 2008. "I had a very interesting blogger conference call with the American Petroleum Institute yesterday," s/he wrote. "This time, however, I did not agree with much of their agenda. ... If a product cannot stand on its own two feet making a profit, government should not be involved producing it." Call participants were listed as Devil's Advocate of Copious Dissent, Nate Hagens of The Oil Drum, Bruce McQuain of The QandO Blog, Robert Rapier of The Oil Drum and R-Squared, Geoff Styles of Energy Outlook, Gail Tverberg of The Oil Drum, and Brian Westenhaus of New Energy and Fuel.

API held another blogger conference call on July 15, 2008. API participants included new media advisor Jane Van Ryan, CEO Red Cavaney, chief economist John Felmy and Jim Hoskins from Harris Interactive. The bloggers on the call included Robert Rapier, Nate Hagens and Gail Tverberg from The Oil Drum, Doug Lambert from GraniteCrok.com, Geoff Styles of Energy Outlook, "as well as several other bloggers from other sites."

An API blogger call on September 26, 2008. The API participants were Jane Van Ryan, Red Cavaney, Prentiss Searles, Sara Banaszak, Tim Sampson and Richard Ranger. The bloggers on the call were Bob McCarty from Bob McCarty Writes, Cindy Kilkenny from Fairly Conservative, Devil's Advocate from Copious Dissent, Doug Lambert from Granite Grok, Gail Tverberg from The Oil Drum, Geoff Styles from Energy Outlook, Greg Balch from Goat's Barnyard, Jim Hoeft from Bearing Drift, Joules Burn from The Oil Drum, Joy McCann from Little Miss Attila, Peter Carlock from OPNTalk, Michael Swartz from Monoblogue, Mick Orton from FedUp Network, Pejman Yousefzadeh from RedState and A Chequer-Board of Nights and Days. "We discussed refineries, what the lifting of the bans [on offshore oil drilling] mean, known and unknown reserves, employment and a few other things," wrote "Goat" of the Barnyard blog. "API rightly pointed out that not a drop of oil was spilled by the rigs in the Gulf during the worst Mother Nature could throw at them during Katrina. ... Another point was brought up about a liberal talking point that we have only a tiny percentage of the worlds oil and population but we use 25% of the world's production of oil. That may be true but we are also the world's biggest producer of goods and services with that oil not to mention the hundreds of other products that come from oil byproducts like plastic, paint, tires, nylon, and cosmetics." Bob McCarty also blogged about the call.

API's October 30, 2008, blogger conference call included a discussion of "the issue of ethanol subsidies and the cost incurred by taxpayers particularly now since gasoline prices have plummeted quite a bit," according to the blogger Vulcan's Hammer. Speakers included API's Jane Van Ryan, Rayola Dougher and Ron Planting, along with Lou Pugliaresi of the Energy Policy Research Foundation.

API held a blogger conference call on May 15, 2009, featuring Robert Ryan, the Vice President of Global Exploration at Chevron; with Justin Higgs, Chevron's News Media Advisor; Mark Kibbe, API's Federal Relations Director; and John Felmy, API's Chief Economist.

West Virginia
API's traditional and online media outreach has been coupled with local speaking events across the country, by API staffers and oil company executives. In February 2008, API's Denise McCourt addressed a Rotary Club meeting in Charleston, West Virginia. "The oil and natural gas industry hasn't done a very good job telling people about energy issues," McCourt told the group. So the industry has taken "a little bit of abuse by the people running for office," she added. McCourt told the audience that higher gas prices don't necessarily mean "atrocious profits" for oil companies. She compared what she said were 2007 profit rates of 7.6 cents per dollar of sales for the oil industry with 9.2 cents per dollar of sales for all manufacturing, except automobiles.

On April 29, 2008, API's Denise McCourt talked to the Rotary Club in Wheeling, West Virginia. "Contrary to popular belief and what some politicians might say, America’s oil companies aren’t owned just by a small group of insiders," she told the Rotarians. "Only 1.5 percent of industry shares are owned by company executives. The rest is owned by tens of millions of Americans, many of them middle class." She also addressed gas prices: "When you talk about what you pay for the price of gasoline at the pump, you have to remember that 72 percent of it right now is actually the price of crude oil. ... About 47 cents [per gallon] on average is actually state and local taxes. ... Those are what help pay for roads and bridges around the country."

Delaware
On May 7, 2008, Shell Oil CEO John Hofmeister, an API adviser, will give a public talk in Newark, Delaware, as part of the University of Delaware's spring 2008 lecture series called "Boiling Point: International Politics of Climate Change."

California
On May 29, 2008, API co-sponsored an event at Stanford University in California, titled, "Energy's Future is in Technology: Innovation in Energy Supply, Energy Efficiency and Alternative/Renewable Energy." Newsweek was the other event sponsor.

Kentucky
In June 2008, API's Denise McCourt talked to the Kentucky state legislature's Special Subcommittee on Energy. "85 percent of the places in the ocean where we think we can find resources are under moratorium and we can not go there," said McCort. "When you look at that kind of number people say wait a minute, 85 percent? Let's say you think some areas are more particularly sensitive than others, but 85 percent of the places where we think we have oil and gas we can't go."

Idaho
In August 2008, API Chief Economist John C. Felmy spoke "to the Rotary Club of Boise about oil prices," and also gave an interview to the Idaho Statesman newspaper. "There is little evidence that retailers are making a lot of money," Felmy told the paper. "And it's not the refiners, some of whom are losing money. ... Right now the Department of Energy estimates that 74 percent of the cost of gas is attributable to the cost of oil."

Lobbying
In February 2009, API hired HBW Resources. The firm's Andrew Browning, "a former special assistant at the Energy Department's office of fossil energy," is lobbying on behalf of API on "the development of domestic oil shale reserves."

In September 2008, API "hired Mehlman Vogel Castagnetti to lobby on energy drilling proposals, tax issues and chemical security legislation," reported The Hill. "The lobbying team includes Jamie Brown, a former special assistant for legislative affairs to President Bush; Kelly Bingel, former chief of staff to Sen. Blanche Lincoln (D-Ark.); and David Castagnetti, former chief of staff to Sen. Max Baucus (D-Mont.)."

"The American Petroleum Institute, the oil industry's main trade group, paid Timmons & Co. $200,000 to lobby the federal government in the first half of 2007," reported AP in August 2007. "The firm lobbied on various pieces of legislation dealing with homeland security appropriations, energy policy, taxes, price gouging and other issues. ... Daniel Shapiro, former deputy chief of staff for Sen. Bill Nelson, D-Fla., is among those registered to lobby on behalf of the institute." 

API spent $4 million to lobby the federal government in 2007, according to lobbying disclosure forms. "The trade group lobbied on various appropriations bills, and on oil taxes and fees, chemical plant security, price gouging, international investment and more," reported Associated Press. "Besides Congress, the American Petroleum Institute lobbied the departments of Defense and State, the Environmental Protection Agency and the Internal Revenue Service."

Personnel

 * Jack N. Gerard

Former personnel:
 * Philip Cooney
 * Red Cavaney; retired as API's president in November 2008

Contact information
American Petroleum Institute 1220 L Street, NW Washington, DC 20005-4070 Phone: 202-682-8000 Websites:
 * http://www.api.org


 * http://www.energytomorrow.org

Related SourceWatch articles

 * Alliance for Energy and Economic Growth
 * BP
 * Conoco
 * Exxon Mobil
 * Jack N. Gerard
 * Ray R. Irani

External articles
See American Petroleum Institute:Articles